I have a Brother Duetta but if you have the same functions, here's what I do:
For line #1 you pick your font and type the first line of text, SET it, move the text where you want it to be (with the arrows), and END EDIT. For line #2 you pick the font again and type the next line of text, SET it, move it to where you want it with the arrows, and END EDIT. Do the same thing over again for lines #3 and #4. Touch the SEWING button - and you know the rest.
Hope this helps!!